Despite some tough moments in 2018, the bull market is now 10 years old. Welcome to the longest bull run in history. The S&P 500 has more than quadrupled from its devil’s bottom of 666 in March 2009.
And a big part of the market’s rally is down to a stellar performance by fast-growing tech companies. Here are the 2 tech stocks that recorded some of the most exceptional gains during this time. These names may not surprise you.
Congratulations to the savvy investors who are already invested in these stocks. But for those investors who haven’t bought into these stocks, is it too late to invest now? Here we delve into whether top analysts see further growth potential ahead for some of the market’s strongest outperformers. Let’s take a closer look now:
The Ace: Netflix
Over the last 10 years, Netflix (NFLX) has posted almost unbelievable gains. From March 2009 to March 2019, you could have made a whopping 6,493% return on Netflix stock! For those who weren’t quite so lucky, does the online streaming giant still represent an attractive investing proposition?
Well, the overall analyst consensus is currently a relatively optimistic Moderate Buy. That’s with a price target of just $402 (15% upside potential). But something interesting happens if we only look at the ratings of top-performing analysts. The consensus shifts to Strong Buy and the price target rises to $420 (20% upside potential).
“Netflix offers a truly compelling value proposition with global appeal. So compelling that Netflix is embarking on what is likely to be its 4th successful price increase in the last five years” writes RBC Capital’s Mark Mahaney.
He reiterated his NFLX buy rating in the wake of strong Q4 results. That’s with a price target ramp from $450 to $480 (37% upside potential). However it’s worth noting that Buckingham’s Matthew Harrigan has just downgraded the stock citing 1) vulnerability to a general market pullback and 2) increased competition from rivals like Disney. (Get TipRanks’ free stock analysis report on NFLX)
The Deuce: Amazon
The second best-performing tech stock of the decade is Amazon (AMZN). Compared to Netflix, its gains seem like drop in the ocean, but we are still talking about an impressive 2,605% rally.
Notably, analysts are still almost unanimously bullish on Amazon’s outlook. Out of 37 analysts covering the stock, only KeyBanc’s Edward Yruma is staying on the sidelines. Meanwhile the $2,116 price target still indicates over 30% upside potential from current levels.
Top Morgan Stanley analyst Brian Nowak has just reiterated his buy rating and $2,200 price target (36% upside potential). Delving into reports of Amazon’s new grocery store offering, the analyst notes that these stores will offer a wider variety of cheaper products that could even extend into the health and beauty market.
As CNN highlights, more brick and mortar locations “will also give the company more pickup and delivery points to meet customer demand, help it gain data about shoppers, and introduce its expanded lineup of food and personal care brands, according to analysts.” (Get TipRanks’ free stock analysis report on AMZN)